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Freelancer taxes

Estonia e-Residency OÜ tax calculator 2026

How freelancers are taxed in Estonia for the 2026 tax year, built from the same data as the calculator. Every figure below comes with its assumptions and sources: treat them as indicative, not advice.

Updated for the 2026 tax year · reviewed Oct 2, 2026

How freelancer tax works in Estonia in 2026

Estonia's OÜ model in TaxCompare assumes profits are fully distributed: corporate distribution tax at 22/78 applies when dividends are paid, not a permanent 0% on retained earnings. The planned temporary defence tax was abolished before 2026.

If you retain profits inside the company, cash tax can be deferred; this page shows the full-distribution case so cross-country net income stays comparable. Read the assumptions before treating Estonia as “tax-free”.

Key figures from the calculator model

  • Models FULL distribution of annual profit as dividends: the realistic case for someone living off the income; the famous "0% on retained profit" only helps if you reinvest/retain and is therefore NOT shown as an effective rate
  • Dividend distribution taxed at 22/78: 22% of the gross distribution pool (≈ 28.21% of the net dividend); the planned 2026 rise to 24% was repealed in Dec 2025
  • Temporary 2% corporate defence tax planned for 2026-2028 was abolished in June 2025 before it took effect and is NOT included
  • The reduced 14% rate on regularly distributed dividends was abolished from 2025

Estonia freelancer tax regimes

Illustrative calculation for €50,000 gross annual income.

Estonia

Private limited company with full profit distribution (osaühing, OÜ, 22/78)

Freelancing through an OÜ (often via e-Residency): 0% on retained profit, but distributing it to live on is taxed at 22/78.

Dividend distribution tax (22/78)€11,000
Total tax & contributions€11,000
Effective rate22.0%
Net income€39,000

Assumptions

  • Models FULL distribution of annual profit as dividends: the realistic case for someone living off the income; the famous "0% on retained profit" only helps if you reinvest/retain and is therefore NOT shown as an effective rate
  • Dividend distribution taxed at 22/78: 22% of the gross distribution pool (≈ 28.21% of the net dividend); the planned 2026 rise to 24% was repealed in Dec 2025
  • Temporary 2% corporate defence tax planned for 2026-2028 was abolished in June 2025 before it took effect and is NOT included
  • The reduced 14% rate on regularly distributed dividends was abolished from 2025
  • Alternative not modelled: paying yourself a salary instead of dividends triggers social tax (~33%) plus payroll income tax, so dividends are the usual freelancer route
  • Not modelled as tax: a small e-Residency OÜ typically pays ~€200-400/month for a registered agent and accounting
  • The entered income is treated as annual distributable profit (revenue net of business expenses); no corporate-level expenses are assumed
  • No first-year activity relief modelled for this regime (none)
  • Effective rate is total tax over gross profit

Sources

Who it's for

  • Estonian OÜ (private limited company), commonly set up via e-Residency
  • Owner-manager who distributes profit to live on (not reinvesting it)
  • Corporate-level bookkeeping and reporting apply

What rate do I need in Estonia?

Enter a target take-home and see the gross, day and hourly rate for Estonia freelancer regimes.

Calculate my rate in Estonia

Compare across countries

See how Estonia compares with other European countries on the same income.

Compare Estonia with other countries

Compare all 17 countries

Net take-home and effective rates for every modelled regime at €30k, €60k and €100k.

Compare all 17 countries

Frequently asked questions

What taxes apply to an e-Residency Estonia OÜ?
Retained profit is untaxed in the model, but living on distributions is taxed. Summary: Freelancing through an OÜ (often via e-Residency): 0% on retained profit, but distributing it to live on is taxed at 22/78. At €60,000 gross fully distributed: about €46,800 net (22.0% effective).
How does Private limited company with full profit distribution (osaühing, OÜ, 22/78) work for freelancers in Estonia in 2026?
Freelancing through an OÜ (often via e-Residency): 0% on retained profit, but distributing it to live on is taxed at 22/78.
Are these Estonia tax figures official advice?
No. They are indicative estimates for the 2026 tax year, based on published rates and the simplifying assumptions listed with each result. Confirm your situation with a qualified local tax adviser.

Other countries

This is an indicative calculator for information only, not tax advice. It models the main freelancer regime(s) with the simplifications listed above and uses dated ECB/NBU exchange rates. Verify with a local accountant before making decisions.